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NRI Account Types for Stock Market

NRE (Non-Resident External) PIS Account

For trading on a repatriation basis — profits can be sent abroad freely. Requires a PIS (Portfolio Investment Scheme) permission from RBI through your bank.

  • Funds sourced from foreign income
  • Tax-free in India (interest is exempt)
  • Full repatriation allowed
  • Requires PIS permission from bank

NRO (Non-Resident Ordinary) Non-PIS Account

For trading on a non-repatriation basis using income earned in India. Simpler to set up but repatriation of principal is limited.

  • For Indian income (rent, pension, etc.)
  • Taxable in India as per applicable rates
  • Limited repatriation ($1M per year)
  • No PIS permission required

Top NRI-Friendly Brokers in India 2026

Z

Zerodha

✓ NRI Friendly⭐ Top NRI Pick

Zerodha was founded by Nithin Kamath in 2010 with a simple mission: make stock market investing accessible to every Indian by eliminating high brokerage charges. Today with 1.4 crore+ active clients a...

NRE PIS: AvailableNRO Non-PIS: AvailableDelivery: Zero (Rs.0)
U

Upstox

✓ NRI Friendly

Upstox (formerly RKSV Securities) was founded in 2009 and is backed by Ratan Tata, Tiger Global, and GIC Singapore. With 1.2 crore+ active clients and zero AMC, it is the most cost-efficient broker fo...

NRE PIS: AvailableNRO Non-PIS: AvailableDelivery: Zero (Rs.0)
A

Angel One

✓ NRI Friendly

Angel One (formerly Angel Broking) was founded in 1987 as a full-service broker and has transformed into a tech-first discount broker. With 2.1 crore+ active clients, it is the second-largest broker i...

NRE PIS: AvailableNRO Non-PIS: AvailableDelivery: Zero (Rs.0)
5

5paisa

✓ NRI Friendly

5paisa is a digital broking subsidiary of IIFL Holdings (India Infoline), one of India's largest financial services groups. Founded 2016. Rs.20 flat brokerage across all segments, access to IIFL resea...

NRE PIS: AvailableNRO Non-PIS: AvailableDelivery: Rs.20 flat per order (not free)
I

ICICI Direct

✓ NRI Friendly

ICICI Direct is the brokerage arm of ICICI Securities (listed company), a subsidiary of ICICI Bank — India's largest private bank. Launched 2000. Pioneered online broking in India. The 3-in-1 account ...

NRE PIS: AvailableNRO Non-PIS: AvailableDelivery: 0.275% Prime / 0.55% regular

How NRIs Can Invest in Indian Stock Market

Non-Resident Indians (NRIs) can invest in the Indian stock market through the Portfolio Investment Scheme (PIS) route regulated by RBI. NRIs are permitted to trade in Equity, Equity F&O, and Currency F&O at BSE and NSE exchanges.

Step-by-Step Process for NRI Stock Market Investment

1. Open an NRE (repatriation basis) or NRO (non-repatriation basis) bank account with a PIS-authorized bank. Most major banks like SBI, HDFC, ICICI, and Axis offer PIS accounts.

2. Obtain PIS permission from RBI through your designated bank. This is a one-time process and applies to one bank account.

3. Open an NRI Demat and trading account with a SEBI-registered broker that provides NRI services.

4. Link your PIS bank account to your trading account. All IPO applications and trade settlements must go through this account.

NRI Investment Limits

NRIs can invest up to 5% of the paid-up capital of an Indian company. The aggregate NRI investment cannot exceed 10% of paid-up capital (extendable to 24% with board approval). NRIs cannot invest in companies engaged in sectors restricted under FEMA regulations.

NRI Taxation on Indian Stocks

Short-term capital gains (held less than 12 months) are taxed at 15%. Long-term capital gains (held over 12 months) exceeding ₹1 lakh are taxed at 10%. Dividends are taxed at 20% (flat rate for NRIs). TDS is deducted at source on all gains. NRIs can claim double taxation relief if they reside in a country that has a DTAA with India.